Vocabulary word of the data: Agnotology http://www.qwiki.com/q/#Robert_N._Proctor
Or if you prefer the classical term: http://en.wikipedia.org/wiki/Obscurantism
The $3.5M Sequoia investment wasn't very risky considering Chad, Steve and Jawed had over $20M collectively in 2004. I have a negative net worth (school loans). Who the hell would invest in someone who had no way of paying you back? When I approached firms and individual investors with YouTube as a business concept from 1998-2003, they all declined.